- Decision
- Maintain
- Rate change
- 0 bps
- monetary policy reference rate
- 6.25%
The Central Bank of Nicaragua (BCN) left its monetary reference rate (TRM) unchanged at 6.25 percent, citing continued domestic growth, a stable decline in inflation and balanced macro-financial conditions amid a slowing but still-growing global economy with uneven disinflation and persistent geopolitical and trade uncertainties. The rate has been steady at 6.25 percent since at least February 2025. The overnight repo and deposit facility rates were also held at 7.50 percent and 5.00 percent, maintaining the established 1-day liquidity corridor. Domestically, activity remains supported by most sectors, firm private-sector credit, resilient external inflows and a low unemployment rate, while food and services price pressures have eased and subsidies plus the exchange-rate policy continue to anchor low, stable inflation. Monetary policy is also credited with safeguarding the currency and bolstering international reserves. Externally, advanced-economy rate cuts have loosened global financial conditions but policies remain restrictive, and any escalation in geopolitical or trade tensions could rekindle supply-chain price pressures. The central bank pledged to keep monitoring internal and external indicators and adjust the TRM when necessary.
Rate evolution
From September 2025 to January 2026, the Central Bank of Nicaragua lowered its policy rate by 50 basis points from 6.25% to 5.75%, cutting in October, pausing in November and December, and easing again in January. The bank linked this path to lower international interest rates and domestic monetary conditions, alongside a domestic backdrop of falling and then stable inflation as food and related service pressures eased, continued economic growth supported by internal demand, exports, private-sector credit and external flows, and a labour market with low unemployment and rising formal employment. Throughout, it said global inflation was declining only slowly and unevenly and that advanced economies remained restrictive despite rate cuts, while uncertainty around geopolitical and commercial tensions could affect international prices, supply chains, financial markets and the global outlook. In the latest decisions, it again cited low and stable inflation, currency and exchange-rate stability, stronger reserves and healthy financial intermediation as support for the January cut, while stressing that unexpected global shocks remain the main risk and that the rate will be adjusted as needed.